Crypto News Round-Up — February 2026

The crypto market remains in flux as regulatory pressure and major institutional moves shape the landscape. This week’s highlights include a warning from Tether’s CTO about Europe’s crypto rules, major banks moving into crypto custody, and new milestones in network usage. We also cover recent trends in Bitcoin ETFs and continuing security risks. The round-up below explains each story and why it matters.

• Tether Executive Criticizes European Crypto Rules
• Deutsche Bank Plans Crypto Custody Service
• Ethereum Staking Levels Reach New High
• Bitcoin ETFs See Shifting Flows
• Crypto Security Threats Persist

Tether Executive Criticizes European Crypto Rules

In an interview with Cointelegraph, Tether’s CTO Paolo Ardoino warned that EU policymakers are imposing onerous rules that could stifle blockchain innovation. He lamented that Europe often ends up regulating “things they don’t understand” (Cointelegraph) and noted that some exchanges have delisted Tether’s USDT stablecoin rather than comply with the EU’s MiCA regime. Ardoino remains bullish on crypto overall but cautioned that strict European rules risk slowing adoption outside major U.S. markets.

• USDT is the crypto market’s leading stablecoin; delistings in Europe can fragment liquidity across markets.
• Europe remains a major market for crypto. Overly restrictive rules may push businesses to friendlier jurisdictions.
• The clash underscores the global balance regulators seek between protection and innovation (Cointelegraph).

Deutsche Bank Plans Crypto Custody Service

Bloomberg reports that Germany’s Deutsche Bank will launch an institutional crypto custody offering in 2026. The bank is quietly building out a crypto unit and plans to offer secure vault services for Bitcoin, Ether, and other digital assets. This move by one of Europe’s largest banks highlights the continued interest in crypto by traditional finance. Having a trusted custodian like Deutsche Bank could make it easier for pension funds and other institutions to hold digital assets.

• Institutional custody by regulated banks can boost confidence, potentially attracting more large investors to crypto (Bloomberg).
• If Deutsche Bank’s service succeeds, other global banks may follow suit and expand crypto services.
• Stronger custody infrastructure also signals that crypto is maturing beyond retail speculation.

Ethereum Staking Levels Reach New High

Data from analysts show that more than 30% of all Ether tokens are now locked in staking contracts on Ethereum’s proof-of-stake network. This is a new all-time high for the share of ETH being staked to secure the blockchain. The rising staking rate reflects investor confidence in Ethereum’s roadmap and provides yield to long-term holders. At the same time, less liquid supply could support Ethereum prices over time.

• High staking means more ETH is locked up, potentially increasing scarcity for active trading.
• Long-term staking indicates strong faith in Ethereum’s future upgrades and usage (CoinDesk).
• Many nodes joining staking further decentralize network security and participation.

Bitcoin ETFs See Shifting Flows

After runs up in Bitcoin’s price, U.S. spot Bitcoin exchange-traded funds (ETFs) recently saw net outflows. Investors took some profits as Bitcoin pulled back slightly. Overall, however, these ETFs remain popular with inflows still outpacing outflows over the past month. The changing ETF flows suggest mix of profit-taking and cautious positioning as markets react to macroeconomic news. Recent filings and reports indicate institutional demand for crypto products remains significant even as volatility rises.

• Net outflows might reflect short-term profit-taking after recent gains, not a reversal of long-term demand (Reuters).
• ETF flow data helps gauge institutional sentiment; steady inflows over weeks show continued interest despite volatility.
• Market watchers are watching for regulatory approvals or rejections of new ETFs which could swing future flows.

Crypto Security Threats Persist

Crypto investors continue to face security risks from hacks, scams, and exploits. In the past year, analysts estimate that tens of billions of dollars have been stolen or defrauded through cyberattacks (Chainalysis). Recent exploits in decentralized finance and deceptive token schemes are reminders that the ecosystem remains a target for criminals. Even alert participants can be vulnerable to phishing and social engineering. These incidents underscore the need for caution and robust security practices in crypto.

• Hackers frequently target smart contract platforms and bridges; users should verify protocols and beware of unaudited project contracts.
• Regulators are citing high losses in crypto crime to justify stronger oversight and compliance (Chainalysis).
• Investors are advised to use hardware wallets and only trade on reputable exchanges to safeguard assets.

Crypto markets are highly volatile and complex. Always do your own research (DYOR) before investing or engaging in any crypto activity. This newsletter provides informational updates, not financial advice.

Bottom Line

Overall, the crypto sector is navigating a dynamic mix of regulation and mainstream adoption. European regulators and major banks are shaping new rules and services, while investors weigh market fundamentals and risks. Solidity among investors coexists with high volatility and ongoing security challenges. Keeping informed and cautious is key. Watch for more news as policies and prices continue to evolve.